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If you have read my previous blog, The Only New Years Resolution You Really Need, you might remember the focus our advisor group places on making financial decisions from a quality of life standpoint. We believe this quality of life decision making process is a great habit to develop as a young adult having to make really tough decisions for the first time on our own. I think it might help if I tell you the story of how I wound up with an umbrella insurance policy, dropped it, and why I think it’s a good lesson for other people who might find themselves in a similar position someday.

We have had several clients ask us about how the recent tax reforms affect how they should be thinking about their charitable giving. Many of these inquiries were a result of their tax professionals reaching out to make people aware of the changes purely from a tax perspective. Before I get into some of the potential impacts tax law changes may have on charitable giving, I would like to remind readers our planning focus is always centered on decisions that help improve quality of life rather than just tax consequences. From a pure quality of life perspective, the act of giving will always remain a benefit to both the giver as well as the receiver! Many studies have shown voluntary giving provides us with an opportunity to express of our own personal values and convictions which helps us potentially experience higher levels of personal health and happiness. We encourage everyone to remain generous with their blessings regardless of the tax consequences!

If we are facing the right direction, all we need to do is keep on walking. – Jack Goldstein

Recently, I was listening to a podcast on health. In this episode, one of the podcasters made a statement that struck a chord with me, “It is better to be consistently good than occasionally perfect.” The podcaster was talking about diet, suggesting that eating healthy foods 80-90% of the time was a far better approach than eating “clean” 100% of the time, because nearly all of us will fail to eat “perfectly” all the time and this failure often results in our giving up the effort of maintaining a healthy diet. Whereas, if we eat healthy foods most of the time but allow for some leniency, we are far more likely to stick with this approach and increase the likelihood of reaching the goal of an overall healthy diet.

Imagine you went to your doctor because you have a sore throat. But, you also are breaking out in hives all over your face. The doctor diagnoses you with strep, writes a prescription, and sends you on your way. Sure, your throat might feel better, but what about the hives? What if the hives are a sign of something more seriously wrong?

A good doctor would not ignore other problems you have, just because it was easy to treat the strep. Seems like common sense, right? As strange as the connection might seem, I’m here to tell you why financial advisors should act like good doctors and diagnose all of your symptoms before developing a plan of action!

This is the time of year when people are receiving year end investment statements and one of the most common questions we get is, “How am I doing?” That seemingly simple question can be challenging to answer because different people want to compare their experiences in different ways. It’s human nature to compare, but part of our value as advisors is to make sure people are making a comparison that is constructive to their decision making rather than potentially destructive.

Over one-third of Americans made a money-related resolution in 2017 (according to study done by Fidelity). Most people said they were resolving to save more, spend less, pay down debt, create a budget…the list goes on. These things are all great, and in an ideal world they would be easy! But have you ever tried cutting out chocolate cold-turkey? How long did that last you? If you have been Hershey-sober since the day you quit—props to you! If you do not have superhuman willpower, then you know how the story ends.

Minnesota has a new type of tax-advantaged account available for those impacted by a qualifying disability prior to their age 26 called an Achieving a Better Life Experience (ABLE) account. ABLE accounts were first implemented as law in 2014 but just recently became available as a state-sponsored plan in Minnesota. This account can be used in conjunction with a Special Needs Trust or as a stand-alone savings vehicle, but you can only have one ABLE account at any time. ABLE accounts are meant to be an easier and less costly way for people with disabilities to save for their future. Many disabled people want to work but often had a disincentive to do so as their income could negatively impact their government benefits. The ABLE account allows them to save that income without negatively impacting their benefits.

Many of our clients are interested in saving and investing to help pay college costs for their children or grandchildren. We often suggest 529 college savings plans to help achieve these goals. For Minnesota residents, lawmakers recently passed new legislation with tax incentives to encourage college savings. Prior to 2011, some Minnesota residents received a matching grant from the State on 529 plan contributions if they were within the income limitations and if the state-specific 529 plan was used. The matching program was taken away in 2011 and there have been no incentivized programs until now.

Overview: Money can buy us happiness, if we spend it right. This book examines the spending principles that new research suggests makes people happier.

Each quarter I will be writing a blog on a financial book. My hope is to summarize each book with a couple of ideas people can implement into their own financial lives. The focus of the blog will be to highlight behaviors, principles and processes that can improve our financial well-being and help us reach our most important financial goals. My first book blog covers a topic that applies to all of us: spending (and how to do it wisely).

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